Collecting Bad Debts from Out-of-State Customers

===========
Question:
===========
Category: Business Law
Location: NJ
Subject:  Nonpaying Customers, what are my options?

I own a product distributorship with national customers in the specialty beverage industry.

What legal recourse do I have for customers who have neglected to pay their accounts?

One of my customers, who was on pre-pay, sent three bad checks in a row for COD orders. Then has ignored any further payment requests after several months of attempted communication. This particular customer is in MA, whereas our headquarters is in NJ.

I have materials to substantiate the sale, and the passing of the bad checks. The total amount is not very large, about $1500.00, what do you think are my options?

Thank you in advance.


===========
Reply:
===========
Category: Business Law
Location: NJ
Subject:  Re: Nonpaying Customers, what are my options?

There are no easy choices. The amount is small and is probably not worth your time to file suit. If you file suit in MA, you or an employee will be needed to testify in court. Is this the best use of your business resources?

If you are looking for an MA attorney, my brother in Law, Michael Mulcahy  practices in Springfield.

To solve the problem in the future, why don't you arrange for a merchant account to accept credit cards and checks by phone?

I hope this helps!

Ron Cappuccio